Sunday, September 25, 2022

JPMorgan CEO calls crypto ‘decentralized Ponzi schemes’

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Whereas testifying earlier than United States (U.S.) lawmakers, JPMorgan Chase CEO Jamie Dimon referred to himself as a “main skeptic” on “crypto tokens that you just name foreign money like Bitcoin,” labeling them as “decentralized Ponzi schemes.”

Dimon was requested what retains him from being extra energetic within the crypto house throughout an oversight listening to held by the Home Monetary Companies Committee on Sept. 21.

Dimon emphasised that he sees worth in blockchain, decentralized finance (DeFi), ledgers, sensible contracts, and “tokens that do one thing,” however then proceeded to lambast crypto tokens that establish as currencies.

Requested for his ideas in regards to the draft U.S. stablecoin bill, Dimon stated he believes that there’s nothing flawed with stablecoins which might be correctly regulated and that the regulation ought to be just like what cash market funds are topic to.

Dimon has as soon as described Bitcoin as a “fraud” and has reiterated up to now he has no interest in backing the sector on a private degree. He has softened his stance on crypto occasionally, as soon as highlighting that it will possibly serve necessary use instances at occasions comparable to cross-border funds. 

Regardless of Dimon’s views on the cryptocurrency house, JPMorgan has been pushing into the blockchain know-how house. The monetary big launched its personal in-house stablecoin — JPM Coin in October 2020 — the primary cryptocurrency backed by a U.S bank, which was geared toward rising settlement effectivity.

Every week after rolling out the coin, the financial institution launched a brand new enterprise division devoted to blockchain know-how known as Onyx. Since then the Onyx platform has been utilized by giant institutional prospects for round the clock world funds.

JPMorgan additionally turned the primary main bank in the Metaverse following the opening of its digital lounge within the blockchain-based world Decentraland in February. The transfer adopted a report that was launched by the agency which referred to the Metaverse as a $1 trillion alternative.

JPMorgan has been hiring new staff to push into the blockchain and crypto house, most not too long ago asserting on Sept. 9 that it has employed former Microsoft government Tahreem Kamptom to be its senior funds government. Kamptom is anticipated to assist JPMorgan discover blockchain tech given his Linkedin bio reveals he has labored on crypto-related cost strategies.

Associated: ‘Most of crypto is still junk’ and lacks use case — JPMorgan blockchain head

Throughout the listening to, the lawmakers additionally requested different prime U.S financial institution CEOs whether or not they had plans to finance crypto mining. Citigroup CEO Jane Fraser, Financial institution of America CEO Brian Moynihan, and Wells Fargo CEO Charles Scharf all steered that their banks had no intentions of doing so.